TCF Bank 2012 Annual Report Download - page 98

Note 12. Long-term Borrowings
Long-term borrowings consist of the following.
At December 31,
2012 2011
(Dollars in thousands)
Stated
Maturity Amount
Weighted-
Average Rate Amount
Weighted-
Average Rate
Federal Home Loan Bank advances and securities
sold under repurchase agreements 2013 $ 680,000 .73% $ 400,000 .97%
2014 448,000 .42 – –
2015 125,000 .44 900,000 4.18
2016 297,000 1.12 1,100,000 4.49
2017 – – 1,250,000 4.60
2018 – – 300,000 3.51
Subtotal 1,550,000 .69 3,950,000 4.02
Subordinated bank notes 2014 71,020 1.96 71,020 2.21
2015 50,000 1.89 50,000 2.14
2016 74,810 5.59 74,661 5.63
2022 109,036 6.37 – –
Subtotal 304,866 4.42 195,681 3.49
Junior subordinated notes (trust preferred) 2068 – – 114,236 12.83
Discounted lease rentals 2012 – – 57,622 5.32
2013 30,985 4.97 36,009 5.28
2014 16,325 4.82 16,641 5.12
2015 8,240 4.79 5,662 5.04
2016 5,451 4.80 4,026 4.98
2017 2,885 4.62 1,787 4.98
Subtotal 63,886 4.88 121,747 5.25
Other long-term 2013 2,340 1.36 – –
2014 2,474 1.36 – –
2015 2,508 1.36 – –
2016 2,542 1.36 – –
2017 2,580 1.36 – –
Subtotal 12,444 1.36 – –
Total long-term borrowings $1,931,196 1.42% $4,381,664 4.26%
At December 31, 2012, TCF has pledged loans secured
by residential real estate and commercial real estate
loans with an aggregate carrying value of $6.4 billion
as collateral for FHLB advances. There were no callable
advances or repurchase agreements included in FHLB
borrowings at year end.
During June 2012, TCF Bank issued $110 million of sub-
ordinated notes, at a price to investors of 99.086% of par,
which will be due on June 8, 2022. The subordinated notes
bear interest at a fixed rate of 6.25% per annum until maturity.
The notes qualify as Tier 2, or supplementary capital for
regulatory purposes, subject to certain limitations. TCF Bank
used the proceeds to pay down short term borrowings.
The $71 million of subordinated notes due 2014 reprice
quarterly at the three-month LIBOR rate plus 1.63%. These
subordinated notes may be redeemed by TCF Bank at par
once a quarter at TCF’s discretion. The $50 million of
subordinated notes due 2015 reprice quarterly at the
three-month LIBOR rate plus 1.56%. These subordinated
notes may be redeemed by TCF Bank at par once a quarter
at TCF’s discretion. The $74.8 million of subordinated
notes due 2016 have a fixed-rate coupon of 5.5% until
maturity on February 1, 2016. All of these subordinated
notes qualify as Tier 2 or supplementary capital for
regulatory purposes, subject to certain limitations.
In 2008, TCF Capital I, a statutory trust formed under
the laws of the state of Delaware and wholly-owned finance
subsidiary of TCF, issued 10.75% trust preferred junior
subordinated notes (the “Trust Preferred Securities”).
TCF determined that the Federal Reserve’s approval for
publication of the notice of proposed rulemaking on
June 7, 2012, which would phase out the Tier 1 capital
treatment of the Trust Preferred Securities, constituted
a “capital treatment event” (as defined in the indenture
{ 82 } { TCF Financial Corporation and Subsidiaries }